Bitcoin Price Analysis: BTC/USD Lags Pennant Breakout, Delaying Run-up To $10,400
- Bitcoin price rejected at $9,600 following an impressive recovery from $8,900.
- BTC/USD deals with resistance at the 50 SMA while a pennant breakout is delayed but expected.
Bitcoin price closed in on $9,600 on Tuesday after a gruesome trading action on Monday when Bitcoin dived under $9,000 to test the support at $8,900. An immediate reversal took place following freshly created demand. The drop gave more bulls an opportunity to join the market as they anticipate the run-up to $10,000.
Meanwhile, recovery stepped above the 50 Simple Moving Average (SMA) in the 4-hour range. The bulls extended the action upwards but their hope of pulling Bitcoin closer to $10,000 was cut short under $9,600. The 100 SMA stood its ground at $9,600 stopping any chances of a breakout. Bitcoin bulls had to seek balance before staging another attempt, hence, the drop back to $9,400.
At the time of writing, Bitcoin is trading at $9,468 after hitting another rejection at the trendline (forming part of the pennant pattern). The 50 SMA at $9,519.44 is still in line to hinder movement in the short term. A keen look at Bitcoin trend in the last two or so sessions shows that sideways action is prominent.
BTC/USD 4-hour chart
The Relative Strength Index (RSI) is holding the ground above the average line. In addition, the MACD displays a bullish picture with its expected cross above the midline. Moreover, the indicator features a bullish divergence that shows that buyers have the upper hand in spite of the rejection at $9,600.
A breakout above the pennant resistance is expected to catapult Bitcoin towards $10,000. Considering how tight the market was in the last two weeks, we expect gains to continue above $10,400 as more and more bulls become confident in the recovery.
Bitcoin Key Intraday Levels
Spot rate: $9,468
Relative change: -60
Percentage change: -0.63
Trend: Bearish
Volatility: Expanding
BTC/USD deals with resistance at the 50 SMA while a pennant breakout is delayed but expected.
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
Published at Wed, 17 Jun 2020 03:07:04 +0000
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